1. Field of the Invention
The present invention relates to a compensation contract supporting system, a method for supporting a compensation contract and a program thereof. More particularly, the present invention relates to a compensation contract supporting system, a method for supporting a compensation contract, and a program thereof that can effectively and easily reduce profit risk for a customer.
2. Description of the Related Art
A business enterprise or a business owner carries various risk factors that influence their profit. This profit risk is different for each corporate structures of the enterprise. For example, an exchange rate is a risk factor that influences the profit of the enterprise that profits from the import and export business. Moreover, the weather, such as temperature or amount of rainfall, may become the risk factor. Furthermore, a factor related to a natural disaster such as an earth quake or a typhoon, a factor related to economic indicators such as GDP (gross domestic product) or unemployment rate, or a factor related to credit risk such as the number of listed bankrupt companies, and the approved numbers of individual bankruptcy may become the risk factor.
The profit risk can be effectively reduced by trading derivatives for the risk factor with a small cash flow. The derivatives belong to the same category of finance with the profit risk such as an interest rates or exchange rate. However, it is difficult to effectively reduce the profit risk, which is created by the risk factors that belong to the other categories, with a small cash flow.